California Urged to Adopt E-15 Ethanol Blend to Lower Gas Prices and Reduce Emissions

Aemetis, Inc., a California-based renewable fuels producer, is urging the California Air Resources Board (CARB) to implement a 15% ethanol blend (E-15) in gasoline. This proposal comes as California faces ongoing challenges with high fuel prices and ambitious climate goals. The company argues that adopting E-15 could lead to substantial economic and environmental benefits for the state.

California currently stands as the only state in the U.S. that has not adopted E-15, despite the EPA's approval for its use in light-duty vehicles since 2011. A study by economists from UC Berkeley and the US Naval Academy suggests that allowing E-15 could result in annual savings of $2.7 billion for California drivers, translating to approximately $0.20 per gallon at the pump. For the average California household, this could mean savings of about $200 per year on gasoline expenses.

Beyond economic benefits, the adoption of E-15 is projected to have significant environmental impacts. Ethanol, derived from renewable sources, emits 46% fewer air pollutants than gasoline. This shift could contribute meaningfully to California's goal of reaching net carbon neutrality by 2045. A CARB-commissioned study indicates that E-15 could reduce emissions of harmful tailpipe pollutants such as particulate matter and carbon monoxide, addressing both air quality and human health concerns.

The timing of this proposal aligns with Governor Newsom's call for a special session of the state legislature to address high fuel prices. Aemetis argues that allowing consumers to purchase lower-cost, cleaner-burning, domestically produced renewable fuel instead of mandating higher-cost imported petroleum fuel is an obvious solution to the state's fuel price challenges.

Eric McAfee, Chairman and CEO of Aemetis, Inc., emphasized the importance of adopting E-15 as an immediate step towards reducing harmful fossil fuel emissions while the transition to electric vehicles and other zero-emission vehicles continues over the next decade. The company states that the necessary steps for allowing E-15 in California, including source testing and on-road testing, have already been conducted, with billions of miles driven on E-15 across the United States since 2011.

The potential adoption of E-15 in California represents a significant shift in the state's approach to fuel composition and could have far-reaching implications for the renewable fuels industry, consumer spending, and environmental policy. As the state grapples with the dual challenges of high fuel prices and ambitious climate goals, the E-15 proposal offers a potential solution that merits serious consideration by policymakers and stakeholders alike.